Up to 98% of privately-built new homes 'to get nil rating' for environmental sustainability » Housing » 24dash.com

Up to 98% of new homes, built by private developers, will be sold on the open market despite getting a 'nil rating' for environmental sustainability, the National Housing Federation has warned.

Under new building regulations introduced today private developers will have to have their homes rated against the Code for Sustainable Homes, as part of an effort to ensure all new homes are built to greener standards.

However, under a loophole, private developers can build homes that emit just as much carbon as before and simply choose to get a 'nil rating'.

Currently, just 2% of privately built homes meet voluntary standards on environmental sustainability under a similar code, called Eco Homes - even though 92% of homes built by housing associations are rated as 'good' or 'very good'.

From today, all new homes will be required to receive a rating against the new Code for Sustainable Homes, which tests the environmental standards of properties against nine criteria and gives an overall rating of between one and six stars.

However, a get-out clause for developers allows them to avoid a physical assessment if they provide buyers with a 'nil rated' certificate stating that the home has not been assessed under the code at all.

This loophole will not be closed until April 2010 - when all private developers will have to ensure that their homes reach at least three stars under the code.

The Federation, which represents England's housing associations, fears the loophole will lead to some developers exaggerating the green standards of their properties, with homes being marketed as having received a rating under the code when they do not even meet basic eco-standards.

Federation officials are concerned that some developers will claim the only reason they did not submit their homes to a full physical assessment was to avoid the extra expense involved.

Federation assistant director Gavin Smart said the government must compel private developers to meet mandatory standards, in line with those already met by housing associations - who are now being compelled to build homes that reduce carbon emissions by 25% and achieve at least three stars under the new code.

Mr Smart said: "What is the point of an eco-ratings scheme if developers can opt-out to avoid a bad result?

"The Government needs to show leadership on this issue and make green homes the norm, not the exception. Housing associations are building homes that meet tough environmental standards, so private developers must be able to do this too - long before April 2010.

"Ministers should raise the minimum building regulations to make sure all new homes are environmentally sound."

He added: "My advice to house buyers is to be extra wary of any properties that haven't been assessed against the Code for Sustainable Homes. Don't just take the seller's word that a property is environmentally friendly."